Would your doctor prescribe the same treatment for every headache?
A good doctor first looks for the cause: dehydration, stress, poor eyesight or something more serious.
Philanthropy should work the same way. Grants are the right treatment for many headaches. For others, recoverable grants, concessional loans, and guarantees may work better.
Consider three situations:
• An organisation providing essential services to vulnerable communities may need flexible funding over many years; expecting repayment could undermine its mission.
• A social enterprise with revenue potential might suit a recoverable grant or concessional loan so that capital can be recycled.
• A project that could attract commercial investment might need a guarantee or first-loss capital to reduce risk for lenders.
No approach is inherently better. What matters is whether the instrument fits the problem, the organisation’s capacity and its stage of development. So before asking how much money to provide, perhaps we should ask what kind is needed.
Even the best treatment only works for the right condition. Which instrument beyond grants have you considered, and what held you back?
Thank you, Boston Consulting Group (BCG), for your report: The Multiplier Effect of Impact Capital (14 September 2026)
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